Bangkok Bank seeks nod to grant more loans in Vietnam

The Vietnamese branch of Bangkok Bank has sought permission to lend more as it nears the 15 percent annual growth limit.

Tharabodee Serng-Adichaiwit, senior vice-president and general manager of the Vietnamese branch, said the bank has adjusted its lending growth target to 30 percent by the end of this year, after it already reached 13 percent in the first six months.

According to The Bangkok Post, rapid, steady economic growth of neighboring countries has made the Thai bank’s loan outlook for the upcoming months promising.

The 15 percent loan growth cap by Vietnam's central bank applies to both local and foreign banks. The credit growth limit was introduced last year to better regulate inflation, exchange rate, and interest rates.

However, institutions can submit a request form to exceed this threshold and the regulator will determine this on a case-by-case basis.

Other banks have also sent their requests to boost credit growth by more than 15 percent, Tharabodee said.

Vietnam's economy has sustained and built on last year’s gains with an impressive 7.08 percent growth in the first half of 2018, the highest rate since 2011.

The World Bank had forecast in a recent report that Vietnam’s economy could expand by 6.8 percent in 2018, revising upwards its previous estimate of 6.5 percent. It has estimated the nation’s GDP growth at 6.6 percent in 2019 and 6.5 percent in 2020.